US upset with India for not checking stainless steel exports

PTIMay 16, 2003, 12.27pm IST

NEW YORK: Upset over India not fulfilling its commitment to check its surging stainless steel exports, the US steel industry has asked the administration to take protective measures including hike in import duty.

"It is time for action... India is wrecking havoc in the US market," said Paul Kelly, Chairman of Speciality Steel Industry of North American (SSINA) and President and Chief Executive Officer of Slater Steel, Inc in a letter to US President George W Bush.At present Indian stainless steel is exempt from US Steel import relief programme which allows the government to take protective measures, including increasing import duty and tariff rate quota.

The Indian government and its steel producers, the letter added, have not lived up to their commitments that the surge would end beginning of January.

This commitment was made by Indian Government representative to US state delegate Robert Zoellick during consulations late last year.

Imports of these stainless steel products in January and February 2003 were triple the monthly average in 2001, and about 37 per cent greater than 2002, a year in which imports surged dramatically.

"Imports of stainless steel angle alone were up by 635 per cent over the 2001 monthly average. Ninety-nine per cent of all stainless steel angle imports in February were from India. Commerce Department data shows requests for import licenses from Indian producers remaining at extraordinarily high levels," it added.